What Damages Can You Recover in a Wrongful Termination Lawsuit?

If you’ve been wrongfully terminated, the emotional and financial toll can be overwhelming. You may be wondering: Can I be compensated for what I’ve lost? The answer is yes—if your termination violated federal or Maryland employment laws, you may be entitled to a variety of damages, including back pay, lost benefits, emotional distress, and even punitive damages in some cases.

In this post, we’ll walk you through the types of damages available in a wrongful termination lawsuit in Maryland, how they’re calculated, and what to expect during the legal process.

What Is “Wrongful Termination”?

Before we dive into the damages, let’s clarify what counts as wrongful termination. In Maryland, where most employment is “at-will,” an employer can generally fire an employee at any time, for any reason—except for reasons that are illegal.

Wrongful termination typically occurs when an employee is fired for:

  • Reporting discrimination or harassment (retaliation)

  • Being a member of a protected class (race, gender, disability, age, etc.)

  • Requesting accommodations or medical leave

  • Filing a workers’ compensation claim

  • Refusing to engage in illegal activity

  • Breach of an employment contract

  • Exercising other protected legal rights

If any of the above apply to your case, you may be entitled to significant compensation.

1. Back Pay

This is often the core damage in a wrongful termination case. Back pay includes:

  • Wages you would have earned from the date of termination up to the resolution of your case (e.g., settlement or court decision)

  • Lost benefits like health insurance, retirement contributions, vacation time, and bonuses

  • Raises or promotions you reasonably would have received

For example, if you were making $60,000 a year and it took you 18 months to find another job after being wrongfully fired, you may be entitled to $90,000 in back pay—plus benefits.

2. Front Pay

If reinstating you to your former position is not possible or practical (which is common), you may be awarded front pay—a calculation of the income you’ll lose going forward because of the wrongful termination.

This amount considers:

  • The time it may take you to find comparable employment

  • The difference in pay if you had to accept a lower-paying job

  • Loss of seniority or promotion opportunities

  • Ongoing impact on retirement or benefits

Front pay is especially important for older workers or those in specialized industries where job opportunities are limited.

3. Emotional Distress Damages

Losing your job unfairly can be traumatic. Courts recognize the emotional and psychological impact of wrongful termination, including:

  • Anxiety

  • Depression

  • Sleep disturbances

  • Reputational damage

  • Stress-related physical symptoms

While harder to quantify, these damages can still be substantial. In Maryland, plaintiffs have recovered thousands to tens of thousands of dollars in emotional distress damages, depending on the severity and supporting evidence.

Important: Emotional distress claims are often strengthened by testimony from a therapist or counselor, so consider seeking professional help if you haven’t already.

4. Punitive Damages

Punitive damages are designed to punish the employer for particularly egregious behavior—such as willful discrimination, harassment, or malicious retaliation.

While not available in every case, Maryland courts may award punitive damages when:

  • The employer acted with actual malice or reckless disregard for your rights

  • There was a clear pattern of discrimination or retaliation

  • Internal policies were ignored or covered up

Punitive damages can significantly increase the value of a case, but your attorney must meet a high burden of proof to obtain them.

5. Attorneys’ Fees and Legal Costs

In many wrongful termination cases, the losing employer may be required to pay your attorney’s fees and litigation costs. This is particularly common in cases brought under:

  • Title VII of the Civil Rights Act

  • The Americans with Disabilities Act (ADA)

  • The Age Discrimination in Employment Act (ADEA)

  • Maryland’s Fair Employment Practices Act

This provision helps level the playing field and makes it easier for wronged employees to pursue justice—even if they can’t afford a lawyer upfront.

6. Reinstatement (in rare cases)

While most employees don’t wish to return to a toxic or hostile work environment, the court can order reinstatement—putting you back in your former position with restored seniority and benefits.

This remedy is more common in public sector cases or situations where retaliation came from one individual rather than systemic issues.

How Are Damages Determined?

Several factors influence the final amount of damages you may recover:

  • Length of time you were unemployed

  • Your salary and benefits at the time of termination

  • Whether you found another job (and how much it pays)

  • Medical records or documentation of emotional distress

  • The strength of your evidence (emails, witness statements, HR records)

  • The employer’s behavior and response to the situation

An experienced Maryland wrongful termination attorney can help assess these factors and estimate your potential compensation.

Final Thoughts

If you’ve been wrongfully terminated, you may be entitled to far more than just your last paycheck. Whether it’s back pay, lost benefits, emotional distress, or even punitive damages, Maryland law offers clear remedies for those who’ve been wronged by their employer.

The key is acting quickly and documenting your case thoroughly. Reach out to an experienced wrongful termination lawyer in Maryland to protect your rights and explore the full scope of compensation you may be entitled to. We recommend wrongful termination lawyers maryland.

By Clare Louise

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